Verizon and T-Mobile Agree to $173M Spectrum Swap

Verizon Wireless and T-Mobile have agreed to exchange AWS-1 and PCS spectrum in dozens of markets around the country in a deal valued at $173 million. The spectrum in question covers portions of Arkansas, California, Illinois, Indiana, Iowa, Kentucky, Massachusetts, Minnesota, Mississippi, Missouri, Montana, New York, North Dakota, Ohio, Pennsylvania, South Dakota, Tennessee, and Virginia. The companies will swap spectrum licenses only; the deal does not include the transfer of assets or customers. The exchange will allow Verizon and T-Mobile "to enjoy the efficiency benefits associated with larger blocks of contiguous spectrum and/or alignment of spectrum held in adjacent markets," according to regulatory filings. The companies expect the deal to close during the fourth quarter of the year. Companies often sell, buy, or swap spectrum from one another. Such deals require FCC approval.